12. What is the present value (PV) of $50,000 received ten years from now, assuming the interest rate is 4% per year?
answer:
Present value is fv/(1+r/m)^mt
FV Future value
PV present value
r rate of interest
m no of months
T number of years
assumption interest credited at end of year
$ 42,736.58 |
12. What is the present value (PV) of $50,000 received ten years from now, assuming the...
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